Siemens was founded by Werner von Siemens on 12 October, 1847.

In the 1850s, the company was involved in building long distance telegraph
networks in Russia

Russia. In 1867, Siemens completed the monumental Indo-European (Calcutta to

London) telegraph line.

In 1881, a Siemens AC Alternator driven by a watermill was used to power the

world's first electric street lighting in the town of Godalming, United Kingdom

During the 1920s and 1930s, S&H started to manufacture radios, television sets, and
electron microscopes.
 vGerman-based 150-year-old diversified and global
manufacturer.

vWith 484,000 employees,

vSiemens does business in 190 countries

v It has 600 manufacturing and R & D (research and development)

facilities in over 50 countries.

v For over 150 years, Siemens has stood for technical achievements,
innovation, quality, reliability and internationality.
v In fiscal 2008, Siemens had revenue of $110.82 billion
Our values – highest performance with
highest ethics
  
Excellent

Achieving high performance and

excellent results
 Industry
 Motors and drives
 Automation
 Building technologies
 Mobility
 Lightning
 Market specific solutions
 Financial solutions
 IT solutions and service
 Communication networks
 Energy
 Power generation
 Power transmission and
distribution
 Solutions for the oil and
gas industry
 Market specific solutions
 Financial solutions
 IT solutions and services
 Health care
 Diagnostic Imaging and
therapy
 Laboratory diagnostics
 Hearing instruments
 Market specific solutions
 Financial solutions
 IT solutions and services
Consumer products
 Computers
 Cordless phones,
broadband and home
media
 Electrical installation
systems
 Hearing instruments
 Home appliances
 Home security
 Lightning
Problems
Problems encountered
• The coordination between the internal
units of the company.

• The collaboration with so many suppliers

and customers.

• Its supply chain—the flow of materials from

suppliers through manufacturing,
distribution, and sales—is very complex.
So many suppliers
& vendors
Supplie
rs &
vendor
s
In effective supply
chain model
Siemens in India

• In Siemens India having 18 manufacturing

units

• Suppliers 25

• more than 500 distribution partners

• Imagine totally 190 countries!!

SOLUTION
100 % E-business
• e-business—that is, a company that performs
various business functions electronically.

• Introducing Web-based systems and

electronic commerce applications in all
of its operations.

• Need to solve the problems caused by

multiple supply chain operations.
§ Embarking on a four-year plan, the
company started the transformation in
1999.
§ Siemens had decided on a dual
approach that it would use its own in-
house information systems capabilities
where it made sense to do so, but it
would also go out-of-house to purchase
some systems from major vendors.
Siemens strategic goals were
to:
• Improve its readiness for extended electronic commerce
by standardizing hundreds of business process into
minimum number of operations by application of
electronic commerce
(For example, the company went from over 300 different
process applications to 29.)

• Redesign the information technology infrastructure

(software components that best fit the company’s needs,
each from a different vendor), integrated into an
enterprise wide platform.
KNOWLEDGE BASE
MANAGEMENT

• Using SAP systems , along with software

from i2 Technology and IBM, the company
built functional systems that link the
enterprise, ensure support functions, and
connect with the company’s supply chain
partners.
SAP & i2 supply chain
solutions
 SAP
 SAP, started in 1972 by five former IBM employees in Mannheim,
Germany, states that it is the world's largest inter-enterprise software
company and the world's fourth-largest independent software
supplier, overall.

 The original name for SAP was German: Systeme, Anwendungen,

Produkte, German for "Systems Applications and Products." The
original SAP idea was to provide customers with the ability to
interact with a common corporate database for a comprehensive
range of applications.
Cont.
 I2 supply chain solutions:
 i2 solutions integrate with data, processes, and systems belonging to
suppliers, customers, distributors, carriers, partners, and contract
manufacturers.

 i2 was founded in 1988 by Sanjiv Sidhu and Ken Sharma, two

visionaries in what would eventually be known as the supply chain
management industry. Sanjiv and Ken were passionate about
applying technology and best practices to eliminate inefficiencies in
business.
KMS
• KMS refers to the set of business
processes developed in an organization
to create, store, transfer and apply
knowledge.
 It increases the ability of the organization to
learn from its environment and to incorporate
knowledge into its business processes

 The idea of a KM system is to enable employees

to have ready access to the organization's
documented base of facts, sources of
information, and solutions.
 Objectives
1)Knowledge acquisition.
2)Knowledge storage.
3)Knowledge dissemination.
4)Knowledge applications.
Benefits
 Sharing of valuable organizational
information.

 May reduce training time for new employees

 Types of KMS
Enterpris
e wide
KMS

Knowledge
work
system

Intelligen
t
techniqu
es.
Functions
Taking customer orders,

Online procuring of materials and components that go

into the manufacturing process,

Collaborating with business partners in developing

products,

Transporting finished products were integrated across

the company, using the Internet as much as possible.
CNTD……

To provide better customer service to

Siemens's business customers.
 RESULTS
FROM
APPLICATION
OF IT
VALUE OF E-BUSINESS
vIn its 2000 fiscal year-
online sales and its electronic
procurement transactions reach 10 percent of its
total sales and purchases, respectively.

vIn 2002 –
online sales increased by 25
percent, and e-procurement grew 60 percent
over its 2000 level.

vIn 2004-
most employees are networked
throughout the company.
 CNTD…
. to the Internet, and
They have direct access
a portal through which employees can
access corporate information is in use.

Helps in cutting cost.

 AFTER IT
APPLICATION
Live Examples Before the
e-business
LIVE EXAMPLES AFTER E-
BUSINESS
WAITING, WAITING AND
WAITING
PICKING POCKET WHILE
WAITING
ONLINE TICKET
BOOKING
Learning From This Case
Study
 Procurement Officer

Bank Suppliers Negotiation

Growers association